IMF calls for climate integration into economic frameworks
By Patience Ikpeme
The International Monetary Fund (IMF) has urged the federal government to integrate climate policies into their economic frameworks.
Addressing journalists at a workshop in Abuja, Vimal Thakoor, Resident Advisor, Macroeconomics and Climate of the IMF, noted that ministries of Finance and central banks have crucial roles to play in the aspect of climate policy resource allocation.
He also commented on the potential negative impacts climate change could have on inflation and the financial sector and called on the Central Bank to mitigate these risks by developing policies that promote price and financial stability.
Vimal Thakoor said that the International Monetary Fund (IMF) is advocating for the Ministry of Finance and the Central Bank of Nigeria (CBN) to actively participate in addressing climate change by incorporating climate-related policies into Nigeria’s economic strategies.
The Resident Advisor at the IMF, emphasized the importance of integrating climate policies into economic frameworks. This means that when the Ministry of Environment identifies a climate policy, the Ministry of Finance should allocate the necessary resources in the budget to implement that policy. This financial support he said is essential for building resilience against the impacts of climate change.
Furthermore, Thakoor highlighted that the Central Bank plays a crucial role in ensuring economic stability, noting that climate change can pose risks to the economy, such as inflation and financial instability.
Therefore, the Central Bank needs to be aware of these risks and develop policies to mitigate them, ultimately promoting both price and financial stability in the long term.
Thakoor argued that countries, including Nigeria, should integrate climate considerations into their economic policies. Failing to do so can lead to significant costs in the long run.
Earlier, the Director of AFRITAC West 2, Eva Jenkner said the IMF is increasing its involvement in addressing the economic aspects of climate change and supporting countries in implementing climate policies.
She stated that global cooperation, including financing and technology transfer, is essential to tackle climate change effectively.
